Valaris to bag nearly $150 million from new contract awards

Offshore drilling contractor Valaris has revealed new contracts and contract extension awards for one semi-submersible rig and three jack-up rigs, with an associated contract backlog of $149 million.

These were awarded subsequent to issuing the company’s most recent fleet status report on 28 July 2022 when it was revealed that four jack-up rigs had secured more work.

Contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements, Valaris said on Thursday.

As detailed by the company, it has been awarded a three-well contract with Eni offshore Mexico for semi-submersible Valaris DPS-5. The contract is expected to begin in the fourth quarter of 2022 and has an estimated duration of 240 days. The operating day rate is $313,500, plus a mobilization fee of approximately $1.2 million.

Currently, the rig is under contract in the U.S. Gulf of Mexico with Murphy until October when it is expected to work in Mexico, also for Murphy, until December 2022.

Furthermore, Valaris has secured a four-well contract extension with a duration in the region of 500 days with Shell in the UK North Sea for heavy-duty harsh environment jack-up Valaris 122. The contract extension will be in direct continuation of the existing firm programme and has a contract value of over $60 million.

The fleet status report from late July 2022 shows that this jack-up has been working for Shell since January 2020 and the previous one-well contract extension with an estimated duration of 150 days is scheduled to start in November 2022 and last until April 2023.

In addition, the rig owner has won a one-well contract with an undisclosed operator offshore Australia for a heavy-duty modern jack-up Valaris 107. The contract is expected to start either late in the first quarter or early in the second quarter of 2023 with an estimated duration of 60 days. The operating rate is $120,000 per day.

Following the completion of a contract with Vermillion in August, an undisclosed operator will have this rig until October after which it will move on to work for Eni until December and after that for GB Energy until January 2023.

Finally, a one-well option has been exercised by DNO in the UK North Sea for heavy-duty ultra-harsh environment jack-up Valaris 247. The one-well option has an estimated duration of 45 days and will be in direct continuation of the existing firm programme, which is scheduled to end in November 2022.